for it. Count d’Estaing had not passed Gibraltar the 27th of last
month, contrary winds having prevented his passing the Straits. About
thirty sail of the line are assembled at Spithead, under Admiral
Keppel, but are not yet in a state for action. They are arraying
their militia, and the chief object of their attention now seems
to be their own defence. As far as I can judge, the King and his
Ministers are not now sincere in their propositions, even such as
they are, of peace and accommodation.
I have not yet obtained any light on Folger’s affairs. The enclosed
copy of a letter from Count de Vergennes will show you the train in
which I have put the inquiry. But I have reason to apprehend, that
persons are concerned, who will have address enough to frustrate
it. The blank paper substituted for the letters taken should be
preserved, and compared with the paper of all the letters received by
the same vessel. Some discovery may be pointed out by that. Mr Deane
and Mr Carmichael should be examined, and their accounts transmitted
here to be compared with those of others.
Spain and the German powers are yet undecided with regard to us. I do
not think our enemies will succeed with Holland. We shall endeavor to
establish a fund for the purposes you desire.
I have the honor to be, &c.
ARTHUR LEE.
_P. S._ By the banker’s accounts it appears, that the following
sums were paid from December, 1776, to March, 1778, to the private
disposition of the Commissioners.
Livres.
To Dr Franklin, 65,956 3 13
To Silas Deane, 113,004 12 13
To Arthur Lee, 68,846 2 16
In my sum is included the additional expense of my journies to Spain
and Germany.
COMMITTEE OF FOREIGN AFFAIRS TO ARTHUR LEE.
York, May 14th, 1778.
Sir,
Your several favors of October 6th, November 27th, and December 8th,
were delivered to us on the 2d instant, the despatches by Mr Deane
and those by Captain Young arriving on the same day. We had before
received your short letter of the 1st of June, but are yet without
that of the 29th of July, in which you had informed us “at large of
your proceedings in Prussia.” Its contents would have proved highly
agreeable to us in these months, when we were quite uninformed of the
proceedings and prospects of your colleagues at Paris. Impressed with
the sense of the value of the King of Prussia’s “warmest wishes for
our success,” we give assurances of equal wishes in Congress for that
monarch’s prosperity. We have little doubt of open testimonies of his
Majesty’s friendship in consequence of the late decision of the king
of France.
Your information in regard to our connexion with the fictitious
house of _Roderique Hortalez_ & _Co._ is more explicit, than any we
had before received, but we further expect that all mystery should
be removed. Surely there cannot now be occasion for any, if there
ever was for half of the past. Our commercial transactions will
very speedily be put under the direction of a Board consisting of
persons not members of Congress, it being impracticable for the
same men to conduct the deliberative and executive business of the
Continent now in its great increase. It has been next to impossible
to make remittances for many months from the staple Colonies, their
coasts having been constantly infested by numerous and strong
cruisers of the enemy. We hope the alliance of maritime powers with
us will remove our embarrassments, and give us opportunity to carry
into effect our hearty wishes to maintain the fairest commercial
reputation.
There will be great impropriety in our making a different settlement
for the supplies received from Spain, from that which we make in
regard to those received from France. We are greatly obliged to the
friends, who have exerted themselves for our relief, and we wish you
to signify our gratitude upon every proper opportunity. But having
promised to make remittances to the house of _Hortalez_ & _Co._ for
the prime cost, charges, interest and usual mercantile commission
upon whatever is _justly_ due to that house, we must keep the same
line with Messrs Gardoqui. On the one hand, we would not willingly
give disgust by slighting princely generosity, nor on the other
submit to unnecessary obligations.
The unanimity with which Congress has ratified the treaties with
France, and the general glad acceptance of the alliance by the people
of these States, must shock Great Britain, who seems to have thought
no cruelty from her would destroy our former great partiality in her
favor. What plan she will adopt in consequence of her disappointment,
time only can discover. But we shall aim to be in a posture, either
to negotiate honorable peace, or continue this just war.
We stand in need of the advice and assistance of all our friends
in the matter of finance, as the quantity of our paper currency
necessarily emitted has produced a depreciation, which will be
ruinous if not speedily checked. We have encouraging accounts of the
temper of the Hollanders of late, and expect that we may find relief
from that quarter among others.
A few weeks, if not a few days, must produce fruitful subject for
another letter, when we shall, in our line of duty, renew our
assurances of being, with great regard,
Sir, your affectionate humble servants,
RICHARD H. LEE,
JAMES LOVELL,
ROBERT MORRIS.
TO THE COMMITTEE OF FOREIGN AFFAIRS.
Paris, May 23d, 1778.
Gentlemen,
In consequence of your despatches by my colleague, Mr Adams, I lost
no moment to press the renewal of the order for the supplying you
with such stores as you want, and as that country affords, from the
Court of Spain. I have the satisfaction to inform you that such
orders are given, and I am assured will be carried into execution as
speedily as possible.
We mean to apply for the loan desired to the monied men of Holland,
and in my particular department, I shall endeavor to take the
favorable opportunity of the arrival of the flotilla to urge the same
in Spain.
War is not begun in Germany or Great Britain; but it seems to be
inevitable.
I have sent orders to all the ports in France and Spain to
communicate the account of the sailing of a fleet of thirteen ships
from England against America, to all the captains who sail for the
United States or the French islands. This I conceived would be
the most certain means of communicating the alarm, and preventing
surprise.
The ministry here are also to convey a letter from us, by every
opportunity, to the same purpose.
I have the honor to be, &c.
ARTHUR LEE.
TO THE COMMITTEE OF FOREIGN AFFAIRS.
Paris, June 1st, 1778.
Gentlemen,
The hurry in which the last despatches went away, prevented me from
being so particular about them as I wished. Nos. 7, 8 and 9 were
omitted, being newspapers, and too voluminous for the conveyance.
M. Monthieu’s papers were sent to show you the demands that are
made upon us, and the grounds of them. You will see that they are
accounts, which Mr Deane ought to have settled. It is this sort
of neglect, and a studied confusion, that have prevented Mr Adams
and myself, after a tedious examination of the papers left with Dr
Franklin, from getting any satisfaction as to the expenditure of
the public money. All that we can find is, that millions have been
expended, and almost everything remains to be paid for. Bargains have
been made of the most extravagant kind with this Mr Monthieu and
others. For example, the uniforms that are agreed for at thirtyseven
livres might have been had here for thirtytwo livres each, and
equally good, which, being five livres in every suit too much, comes
to a large sum upon thousands.
Of the 100,000 livres advanced to Mr Hodge, there appears no account.
I have been told that Cunningham’s vessel cost but three thousand
pounds sterling; for what purpose the overplus was given to Mr Hodge,
how the public came to pay for her refitting, and at length the
vessel and her prize money made over to Mr Ross and Mr Hodge, without
a farthing being brought to public account, it rests with Mr Deane
or Mr Hodge to explain. I have enclosed you all the receipts found
among those papers, the sending of which has been neglected. Of the
triplicates and duplicates an original is sent, and copies of those
that are single. You will see that my name is not to the contracts.
In fact they were concealed from me with the utmost care, as was
every other means of my knowing how these affairs were conducted;
and as both my colleagues concurred in this concealment, and in
refusing my repeated requests to make up accounts and transmit
them to Congress, it was not in my power to know with accuracy,
much less to prevent, this system of profusion. I was told that Mr
Williams, to whom I knew the public money was largely intrusted, was
to furnish his accounts monthly, but they were never shown me, and it
now appears, that for the expenditure of a million of livres he has
given no account as yet, nor can we learn how far what he has shipped
is on the public, how far on private account. We are in the same
situation with regard to Mr Ross. This indulgence to Mr Williams,[34]
and favoring M. Chaumont, a particular friend of Dr Franklin, is
the only reason I can conceive for the latter having countenanced
and concurred in all this system. You will see a specimen of the
manner of it in the enclosed copy of a letter from Dr Franklin to his
nephew, which the latter sent me as an authority for his doing what
the commercial agent conceived to be encroaching on his province. I
have done my utmost to discharge my duty to the public, in preventing
the progress of this disorder and dissipation in the conduct of its
affairs. If it should be found that my colleagues have done the
same, I shall most cordially forgive them the offence and injury so
repeatedly offered me in the manner of it. I do not wish to accuse
them, but excuse myself; and I should have felt as much happiness in
preventing, as I have regret in complaining of this abuse.[35]
The appearance of things between this country and Great Britain,
and the Emperor and the King of Prussia, has been so long hostile,
without an open rupture, that it is not easy to say when either
war will begin. The King of Prussia has found it so necessary to
cultivate the aid of Hanover, Hesse, Brunswick, &c. that he has
declined receiving your deputy, or following the example of France
as he promised. It remains therefore to try the Empress, who,
independent of the present crisis, was much less inclined to our
cause. It seems to be the settled system of northern politics, that
if a war should happen, the Empress of Russia will assist the King of
Prussia, as far as the Porte will permit her.
In this country, the appointment of Marechal de Broglio commander of
the army on the sea coast, and the Duc de Chartres, son to the Duc
d’Orleans and Prince of the blood, going on board the fleet at Brest,
announce designs of some dignity and magnitude.
I am of opinion, with our colleague Mr Adams, that it would be better
for the public, that the appointment of your public ministers were
fixed, instead of being left at large, and their expenses indefinite.
From experience I find the expense of living in that character cannot
well be less than three thousand pounds sterling a year, which I
believe too is as little as is allowed to any public minister above
the rank of a consul. If left at liberty, I conceive that most
persons will exceed this sum. Neither do I perceive any adequate
advantage to be expected from having more than one person at each
Court. When things take a more settled form, there will be little
need of that check, which is the chief utility of it at present.
The mixing powers too, and vesting them in several persons at the
same time, give ground for disputes, which are disgraceful as well
as detrimental to the public. This has been much experienced in the
case of the commercial agents, and the agent of the Commissioners,
who have been clashing and contesting till the public business was
almost entirely at a stand. For the present, however, we have settled
this matter, by directing all commercial business to be put into the
hands of those appointed by the commercial agent, till the pleasure
of Congress is known.
Two more ships have been lately sent to Newfoundland, and two to the
Mediterranean, which, with thirteen detached under Admiral Byron to
reinforce Lord Howe, leave seventeen of the line and eight frigates
for Admiral Keppel, and these very ill manned. I have exceeding good
information, that their plan of operations for America is as follows.
General Howe is to evacuate Philadelphia, sending five thousand of
his troops and two ships of war to Quebec; the rest of the troops
with the fleet are to return to Halifax, where the latter being
joined by Admiral Byron will, it is presumed, maintain a superiority
in those seas over the allied fleet.
I wrote you before, that the lowest estimate given to the English
Ministry for the defence of Canada was eight thousand men, and that
their actual force there was about four thousand; the five thousand
added will, in their opinion, be sufficient, with their superiority
at sea, for its protection. I cannot learn that any but some German
recruits are to be sent out this year, and from the situation of
things they are more likely to recall a great part of their troops,
than to reinforce them.
Our friends in Spain have promised to remit me 150,000 livres more,
which I shall continue to vest in supplies that may be useful to you.
I hope, in consequence of what I formerly wrote, to have the express
order of Congress relative to the line they would choose to fix
between the territories of the United States, and those of the crown
of Spain. The privileges to be enjoyed by the subjects of the United
States, settling for the purposes of commerce, and the regulation
of port duties, remain yet to be settled in both nations. But I
foresee that if they are left unregulated, they will be the source of
complaints and disagreements.
The flotilla is not yet in port, which retards the operations in
Europe. I could have wished that the great object of having a
superior naval force in America, had not been left to the uncertain
issue on which it was placed by other advice than mine. Had the Brest
and Toulon fleets, which were equally ready, been ordered to sail at
the same time, that which met immediately with favorable winds to go
on, and the other to return, one of them would probably have been
upon your coast before this time, that is, before the English fleet
could possibly have sailed to reinforce and save Lord Howe; and as
having a superior force in America was the great object, together
with that of taking the Howes by surprise, they should have made as
sure of this aim as possible. And indeed, had it been executed with
address, the war would have been ended.
M. Penet has proposed to me the collecting and carrying over a number
of workmen to establish a foundery of cannon, and a manufactory
of small arms. It is to be at his expense, under the protection
of Congress. As this seems to me much more likely to answer your
purposes than our sending them, I have ventured to give him my
opinion, that it will be acceptable to Congress. We have found such
a universal disposition here to deceive us in their recommendations,
that it is ten to one, if workmen chosen by us in such a circumstance
were skilful.
The disposition in Holland seems to be favorable to us, but I
apprehend it is not warm enough to produce any decided proof of it,
till they see Great Britain more enfeebled. M. Dumas has published
a Memoir I sent him on the subject, which he thinks will have some
effect.
With my humble duty to Congress, I have the honor to be, &c.
ARTHUR LEE.
[34] The insinuation here, that Dr Franklin was disposed to favor Mr
Williams, because he was his nephew, seems to have been made without
just grounds. The contrary indeed would appear from the following
extract of a letter, written by Dr Franklin to Mr William Lee, March
6th, 1778, when Mr Lee proposed to him that the Commissioners should
appoint Mr Williams as a commercial agent at Nantes.
“Your proposition,” says Dr Franklin, “about appointing agents in the
ports, shall be laid before the Commissioners when they meet. In the
mean time, I can only say, that as to my nephew, Mr Williams, though
I have from long knowledge and experience of him a high opinion of
his abilities, activity, and integrity, will have no hand in his
appointment, or in approving it, not being desirous of his being in any
way concerned in that business.
“I am obliged to you for your good opinion of my nephew, manifested in
your intention of nominating him as above, and I beg you to accept my
thanks, though for particular reasons, which you know, I do not wish
him to accept the employment.”
[35] For a full explanation of all the charges contained in this
letter, see Silas Deane’s Correspondence in the present work, Vol. I,
p. 139, under the date of October 12th, 1778,--also, p. 148 of the same
volume. And for a further notice of Mr Williams’s accounts, see p. 172.
TO M. DUMAS.
Chaillot, June 4th, 1778.
Dear Sir,
It gave me great pleasure to receive the key to the treasure you sent
us before in Dutch, my unacquaintance with which having prevented
me from knowing how much I was obliged to you, for the improvement
made in the little essay I had the honor of sending to you. _Felix
faustumque sit._ May it open the eyes of your people to their own
interests, before a universal bankruptcy in England, and a compelled
frugality in America, have deprived them of the golden opportunity of
extricating themselves from bad debtors, and connecting themselves
with good ones.
So fair an opportunity of sharing in the most valuable commerce on
the globe, will never again present itself; and, indeed, they are
greatly obliged to the noble and disinterested principles of the
Court of France, which prevented this country from attempting to
possess itself of the monopoly, which Great Britain had forfeited. In
truth, they were great and wise principles, and the connexion formed
upon them will be durable. France, and the rest of Europe, can never
pay too large a tribute of praise to the wisdom of The Most Christian
King, and his Ministers, in this transaction.
You are happy in having the esteem and counsel of the Grand Facteur,
who seems to have equal good sense and good intentions. Our enemies
seem embarrassed in their operations. As far as we can learn, their
fleet has not yet sailed for America to save the Howes from the fate
that hangs over them. We have no intelligence on which we can rely.
I have the honor to be, &c.
ARTHUR LEE.
TO THE COMMITTEE OF FOREIGN AFFAIRS.
Paris, June 9th, 1778.
Gentlemen,
My last of the 1st, informed you of Admiral Byron, with thirteen
sail, being ordered against you, of which we sent notice by every way
most likely to warn the States of their danger.
We have now certain advice, that this fleet having put into Plymouth
is there stopped, their remaining fleet being found too weak to
protect them at home. I enclose you a late account of their force and
the disposal of it; and nothing seems more certain, than that the
naval and land force now employed against you will be diminished, not
augmented. However, I have now settled such means of intelligence,
that you will be apprized if any alteration should happen.
All our intelligence announces the utmost confusion in Great Britain
and Ireland; such as will infallibly find them employment at home,
independent of France and Spain. Their councils are so fluctuating in
consequence of the variety of their distress, that advices of them
cannot be given with certainty; that is, without being frequently
subject to appear premature.
The British Ministry have agreed to an exchange of prisoners with us,
by which we shall immediately release upwards of 200.
War is not commenced in Germany, but is talked of as inevitable.
The deputy of Congress for Vienna is at his destination to feel the
disposition of that Court. But I understand, that their attention is
so engaged with the approaching war, that other propositions proceed
slowly. As the King of Prussia contends against the Empress and the
House of Austria, in maintenance of the treaty of Westphalia, which
is the great bulwark of German rights, it is therefore necessary,
that he should league himself with the German Princes, among whom the
King of Great Britain, as elector of Hanover, bears so much sway,
that he could not hazard the turning his influence against him by
entering into an alliance with us. To cultivate and encourage the
favorable disposition towards us in Holland, we have sent them the
treaty concluded here, and we shall follow it by proposals for a
loan, as soon as Dr Franklin (to whom the digesting of the plan, and
having the proposed bills printed, is left) has prepared the business
for execution.
Mr Williams has at length given in his accounts, from which it
appears, that upwards of forty thousand suits of the soldiers’
clothes ordered, and twenty thousand fusils, have been sent from
Nantes and Bordeaux; and the present exhausted state of our finances
will not permit us to fulfil them further. The ships of war sent
hither are an enormous expense to us; hardly any of them less than
100,000 livres, and things have been hitherto so managed, that their
prizes produce us little or nothing. This seems to have arisen from
the variety of agents employed, the confusion of their provinces,
and the loose manner in which the public accounts have been kept.
To remedy this, we have to simplify the business of expenditure, by
directing the whole to be discharged by the two deputy commercial
agents appointed by my brother, in the interval of his negotiation
in Germany. By this we expect to avoid the infinite impositions
arising from a connexion with a multiplicity of merchants, many of
whom, supposing us to know no better, will endeavor to deceive us.
They, as merchants, know how to check the others, and are themselves
ultimately responsible to us.
I have the honor to be, &c.
ARTHUR LEE.
TO COUNT DE VERGENNES.
Chaillot, June 14th, 1778.
Sir,
It was with great pleasure I heard the explanation, which your
Excellency did me the honor to give me yesterday relative to the 12th
article of the Commercial Treaty; that it was meant to comprehend
only provisions, and not the whole of our exports to his Majesty’s
Islands, and that _denrées_, the word employed, signifies eatables,
not merchandise. It relieved the apprehensions I had entertained,
that the having set in that article the whole of our produce
against one of your productions would seem unequal, would therefore
give uneasiness in Congress, and prevent that unanimity in their
approbation of the treaty, which the wise and liberal principles on
which it is planned deserve; and which I most sincerely wished it
might receive.
Upon referring, however, to the words of the treaty, I find they are
_denrées et marchandise_, so that the words appear, by I know not
what accident, to have been different from, and to mean more than you
intended. I lament extremely that nothing of this explanation passed
in our conference and correspondence with M. Gerard on this and the
preceding article. Yet I am not without hope, that Congress will
rather trust to the equity of your Court for reducing the article to
its intended equality, than gratify our enemies by an appearance of
dissension in ratifying the treaties.
Reciprocity and equality being the principles of the treaties, and
duration the object, your Excellency will, in my judgment, have an
opportunity of strengthening the confidence and ties between us,
by offering to remove words of a latitude not intended, and of an
inequality, which must be seen and create dissatisfaction.
I have the honor to be, &c.
ARTHUR LEE.
COUNT DE VERGENNES TO ARTHUR LEE.
Translation.
Versailles, June 15th, 1778.
Sir,
I received with pleasure the letter you did me the honor of writing
to me yesterday. We shall not be long probably before we receive
news from your constituents, and their judgment of the act which you
signed here in conjunction with your colleagues. Should they demand
any eclaircissements, we shall not refuse to make them. You know our
principles, and I think we have given proofs of our disinterestedness.